Financial investment

  • Here, As a Financial Investment Advisor we can recommend the Investment product which can be more beneficial for the client either it’s for long term or for short term.
    As an investment advisor you need to know the share market capitalisation of companies, annual return, background and historical data of company and long term sustainability. Investment advisor helps their client to distributing their Investment in different kinds of product which give them best returns.

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    We should recommend the ordinary shares of companies, which have good rate of return & monthly holding period return.
    Investing in stocks can have many financial benefits over a long period of time. Shares are easy to trade in market and only need small amount of money to invest. However, there are risks that you might need to bear in mind at the time of investment.
    We need to analyse the two different companies Monthly Holding Period Return and their rate of return for given period of time.
    Moreover, Monthly holding period return calculation shows return received from holding a securi-ty over a period of time, expressed as a percentage. It’s useful to compare returns received from two different products for different period of time.
    Monthly Holding Rate of Return from Oct’2013 to Sep’2014
    Month BHP Billiton Ltd
    1st of Month Buy Price 30/31st of Month Sale Price Calculation=(Sale Price/Buy price)^12-1
    Monthly Holding %Return
    Oct'13 35.67 37.66 1.06 2.012 1.01 101.20
    Nov'13 37.4 37.39 1.00 1.000 0.00 0.00
    Dec'13 37.47 37.99 1.01 1.127 0.13 12.70
    Jan'14 37.99 36.57 0.96 0.613 -0.39 -38.70
    Feb'14 36.55 38.58 1.06 2.012 1.01 101.20
    Mar'14 37.65 36.47 0.97 0.694 -0.31 -30.60
    Apr'14 36.55 37.75 1.03 1.426 0.43 42.60
    May'14 37.87 37.01 0.98 0.785 -0.22 -21.50
    Jun'14 36.36 35.9 0.99 0.886 -0.11 -11.40
    Jul'14 36.19 38.68 1.07 2.252 1.25 125.20
    Aug'14 38.3 36.67 0.96 0.613 -0.39 -38.70
    Sep'14 36.84 33.87 0.92 0.368 -0.63 -63.20
    Month ANZ Bank
    1st of Month Buy Price 30/31st of month Sale Price Calculation=(Sale Price/Buy price)^12-1
    Monthly Holding %Return
    Oct'13 30.75 33.84 1.10 3.14 2.14 213.80
    Nov'13 33.80 31.90 0.94 0.48 -0.52 -52.40
    Dec'13 32.05 32.23 1.01 1.13 0.13 12.70
    Jan'14 32.23 30.13 0.93 0.42 -0.58 -58.10
    Feb'14 30.00 32.14 1.07 2.25 1.25 125.20
    Mar'14 32.14 33.06 1.03 1.43 0.43 42.50
    Apr'14 33.15 34.47 1.04 1.60 0.60 60.10
    May'14 34.73 33.49 0.96 0.61 -0.39 -38.70
    Jun'14 33.50 33.34 1.00 1.00 0.00 0.00
    Jul'14 33.36 33.97 1.02 1.27 0.27 26.80
    Aug'14 33.70 33.43 0.99 0.89 -0.11 -11.40
    Sep'14 33.45 30.92 0.92 0.37 -0.63 -63.30
    (Source: Yahoo Finance)

  • *Calculate Required Rate of Return on ordinary shares – BHP Billiton Ltd

  • *Calculate ordinary share valuation – single holding period for both the above compananies

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